Home / Knowledge / News / Textiles / Cavalier Corporation to shut down NEC Spinning Plant
Cavalier Corporation to shut down NEC Spinning Plant
Jun '12
Cavalier Corporation has advised staff at the yarn spinning plant of its subsidiary company Norman Ellison Carpets (NEC) that the plant is closing down on 26 July.  Staff affected by the closure were given the news at site meetings this morning. 

This decision was not taken lightly and came after a very thorough review process involving all of the Group's three woollen yarn spinning plants.

In April, Cavalier Corporation signalled that its earnings for the current financial year would be affected by one-off restructuring costs as it repositioned the broadloom carpet business to cope with the difficult operating environment. While the Company indicated at the time that the impact of the restructuring was difficult to project because of uncertainties as to timing, it still believes that if the estimated cost of all contemplated initiatives was taken into the current year, it would have the effect of reducing underlying earnings of between $3-5 million after tax to a loss of $1-3 million after tax.

The closure of the NEC spinning plant will result in a significant reduction in operating costs for the broadloom carpet business and is an integral part of the comprehensive business improvement program aimed at delivering $10-12 million profit after tax in the 2012-13 year.

Eight staff from the yarn spinning plant will transfer into NEC's tufting plant and it is hoped that at least a dozen of the NEC spinning staff will relocate to other plants within the Group, limiting redundancies to around 70 staff.  Some staff will be retained to de-commission and reinstall some of the existing NEC equipment at the Group's other plants.  All staff will be given every assistance to find other employment including job support outplacement and retraining allowances.

Staff have been advised of their redundancy entitlements and the plant will stop making yarn before the end of July.

The Board stressed that the NEC carpet business and the Norman Ellison Carpets brand itself would not be affected by the move.

This decision is about reducing over-capacity in the yarn spinning operations that support the Group's broadloom carpet manufacturing operations.  NEC will continue to make carpet at its Onehunga tufting plant, supported by very capable manufacturing and sales teams.

Cavalier Corporation

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Opening ceremony of the new UL Vietnam laboratory. Courtesy: Business Wire

Textiles | On 22nd Oct 2016

UL opens first testing laboratory in Vietnam

UL, a global safety science organisation, has officially opened its...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search